Electric vehicle maker Tesla (TSLA) has issued a recall of its Cybertruck due to a problem that can result in a loss of drive power in the futuristic looking pick-up truck.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Specifically, Tesla said that it is recalling 2,431 Cybertrucks in the U.S. due to a problem with the electric trucks drive power. The company said in a statement that there is a problem with the drive inverter in Cybertrucks manufactured between Nov. 6, 2023 and July 30, 2024.
That problem can cause the part to stop producing torque when the driver steps on the accelerator pedal, resulting in a loss of propulsion and increasing the risk of a crash. Tesla said that it will replace the recalled drive inverter with a functioning component at no extra cost to vehicle owners.
Multiple Recalls
This is Tesla’s sixth recall of the Cybertruck this year. In October, Tesla recalled more than 27,000 Cybertrucks in the U.S. due to delayed rearview camera images that can impair driver visibility and lead to crashes. After multi-year delays, Tesla began delivering the Cybertruck in 2023.
The company has not disclosed specific production or delivery numbers for its newest electric vehicle model. Analysts have said that the Cybertruck could revitalize the company’s aging line-up of electric vehicles, most of which are sedans or sport utility vehicles (SUVs).
Tesla’s stock has increased 32% so far this year.
Is TSLA Stock a Buy?
Tesla stock currently has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 11 Buy, 16 Hold, and eight Sell recommendations made in the last three months. The average TSLA price target of $207.83 implies 36.73% downside risk from current levels.
